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tv   Countdown to the Closing Bell  FOX Business  November 30, 2012 3:00pm-4:00pm EST

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so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it'just common sens from td ameritrade. ♪ liz: happy friday, everybody. i am liz claman. "countdown to the closing bell" begins right now. it is the last hour of trade. last day of the month for trade. lining up before the weekend. not wanting too much exposure. maybe some type of newsbreak about the fiscal cliff over the weekend. buyers have been kept pretty
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much on the sidelines. house speaker john boehner talking yet again today about the lack of progress in talks with the president. this is a quote "there is almost no progress, but he is willing to move forward in good faith." consumer discretionary stocks have been the week links today. things like yum brands have been down on things like heavy volume. sale estimates missed. hy retail out of fashion once again. coach and tiffany in the red. they missed their earnings numbers. market does not like surprises. let's take a look at metal. gold down about $17. even as the dollar falls against the euro. perhaps, you can blame it on the fiscal cliff. you can mention that silver is
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down more tightly. lots of things going on in the markets. coming up just a little bbt later in the show, you have to see this. talk about optimism. michael milken. remember him in the 90s? he was a real rock star when it came to backing small entrepreneurial ideas and companies and then became huge. now, he is all about doing the same for medicine did helping patient in funding research by teaming up with the national institute of health. major innovation coming from the private sector. you will get to sit down with him because i did. first, let's get to the new york stock exchange. losing the ability to shock the
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markets with the sound bite of the day. >> no progress whatsoever. a lot of that all weekend long. i thought maybe on the back of some of that, some of that political rhetoric, but, now, very low volume. keeping an eye on that. the market has not seen any major selloff here. maybe that is a positive. there will be a whole lot of the same if washington continues to come back with nothing. liz: volume has been below. lincoln. maybe i misspoke, actually. you see how the dow continued to do -- the grade. >> certainly washington has been the focus this week.
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what i think you are alluding to is absolutely right. if you look at what has been happening at the consumer discretionary, there it is. you are seeing companies punished and punished pretty severely. you will continue to see that as we work through the third quarter numbers. even though we saw significant upticks, that is really getting expressed in the markets here. seeing them trade sideways off of that bounce. also the 1350 level on the s&p. liz: the energy market isn't exactly trading sideways. you have crude oil above $88 a barrel. >> they bought crew today.
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i think natural is oversold. short term, short-term, i have been bearish on natural gas for quite a few months. i think this is the low we will see for another week. >> oil at a $90 level. people may have been sort of like you. is that trade over if it does indeed exist? >> i think crude oil will get up to the $90 level and then back off. so, right now, i am getting more natural gas. right here, very short-term. short-term, i am buying. liz: good to see all of you. thank you so much. have a good weekend, if you can. my next guest says exactly that. the fiscal cliff is just noise and you should all focus on the
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fundamentals. we have actually had a decent recovery here. joining me now is michael church. we kind of forgot about housing was all the drama going on in d.c. it looks relatively decent. >> nothing dramatic. i think the trend is very clear now. liz: do you like the homebuilders? >> no. i think they have had an incredible run. liz: how would you play what you correctly point out what is a decent flight moving to the upside? >> i think you have to look at the financials. i think specifically, the larger banks, where they are really trading at deep valuation.
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liz: bathhouses get there see legs, so should the banks. >> it is a rising tide lifts all boats. housing is important for all levels. liz: they cannot take as much risk as they used to. they feel as if their markets are getting squeezed. >> i would be a little more careful. liz: the financials, though, putting that aside, what else looks primed and ready. is there another way, sort of a side window or back door play? >> i think beckoning markets as a whole will benefit. liz: if anyone pays attention. they are too busy looking at other things. if i am a homebuilder, i think,
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you guys wanted us to do better and no one is paying attention. >> this is not a market event. markets sold off dramatically. of course, we spent the next six months rallying. liz: remember that lesson, everybody. the market was skyrocketing. the slower, dumber money, that would be the retailer, do you think that will happen again? >> i think the public is more scared than they probably should be. the reality is -- liz: since we have you here and you have a have a billion, i have about ten grand, where would you allocate that? >> i think you want to put a piece of that in at least one bank. jpmorgan looks like one of the best. despite everything that went on this summer.
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they were able to withstand it. they are wonderfully positioned to benefit from the overtown in the housing market. >> i guess the question becomes is that plague still dead money with such weak yield. >> i would stay away from the bond market, entirely. liz: you say to not even bother. >> what is there to gain at this point? i think you are putting yourself at risk in the long run. unfortunately, probably one of the more popular. liz: he also has things that he thinks are absolute winners. he will talk about his favorite talks in the market. he is smiling because he is excited to say these names. closing bell ringing in 51 minutes. he is a very passionate person
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about edison. curing diseases you may have. we are talking about michael milken. a private citizen making a big difference. along with his partner of the national institute of health coming up next. they speak to us, to you, to speak about how they turn a think tank into an action think. ♪ [ male announcer ] at sttrade, you won't just find uonline, you'll also find us in person, with dedicated support teams at over 500 branches nationwide.
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liz: stocks are in our power mover. talk about a tough day. if you are bearish and short, you are loving it. if you own it outright, you are not very happy at all. plunging 13%. making it our power mover of the day. it's new deal with the department of commerce is not so great. analysts are concerned about growth and margins. every time you buy something
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online, they make sure that when you are signing it is all safe. in the business of managing internet addresses, you register your domain name to them as well. you pay about eight dollars. let's talk about mike milken. he was a legend on wall street. now he is revolutionizing the world of biotechnology. it is not a think tank, but as he puts it, and action tank. today i had the opportunity to sit down with francis collins and michael milken. >> fast and various means lives. if we can solve problems, it gets translated to how many people will not pass away or how we will improve the quality of
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life. most people do not recognize that the major driver of economic growth in the world, for almost 20200 years, has been bioscience. it runs on tracks. in the united states, the average speed that the train travels is the same as it was 100 years ago. we have not changed the tracks. we work on government systems. the way research is done. if they accelerated that process -- liz: doctor collins, here is the question then, often the problem is so huge that government has to come in. it is government money of the scale. with government money often comes red tape and perhaps bureaucracy.
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how have you managed to chop through that and continue to keep things sound? >> we are proud to get red tape out of the way in to keep the bureaucracy to a fair minimum. we are the largest supporter in the world. when you hear about a breakthrough in some medical research project in stamford or chicago or washington university in st. louis, it is extremely likely that we funded that. we funded that with your dollars. in many instances it does not have a direct connection to a product. the economic benefits of this are enormous. liz: and searching cases that regulation would help to make sure things do not get fast tracked so quickly to make sure people do not die from side effects. at the same token, they can keep medications off the shelf and people die because it is not out there fast enough.
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how do you bridge that gap? >> the first thing is, you need financial capital. many years ago, we try to refocus the country's attention on investing in biosciences. that has been an incremental 200 billion. when doctor collins says to you, it took 13 years and almost 14 billion, next year or the year after, it will take two hours and $8000. what took 15 years to bring a drug to market may take two. that drives down cost. faster cures is really bringing to gather all the constituency.
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the academic research centers, government under the leadership of doctor collins and others. liz: you say others. how about the little guys. the entrepreneurial spirit is really what comes up with the best ideas no matter what sector. >> there are 50 biotech companies here. all the associations are here. many of the companies that used to be small are now large. liz: who has the best ideas, the little guys or the bigger ones? >> the best investment we have ever made in philanthropy over the last 30 years is getting people young in their career. liz: you are known as zach guys who do that kind of thing. doctor, do you get a sense of who has the best idea? >> the best and brightest in
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universities, they come out with ideas then they may be used to be in the past. making sure we do not have those bottlenecks. something called the valley of death which prevents great ideas from actually finding their way in. they're working much more closely to try to identify new scientific approaches. >> if you look at a period of time of 30 or 40 years, all job growth was in small businesses. access to capital for them. young companies, today, large pharma has a different approach. they are looking to partner with them. they, too, want to keep the innovation available. liz: there he is working with government, but as a private citizen funding all these ideas.
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wade into you here what michael milken has to say about the fiscal cliff. in terms of what it would do to funding and research and development. that is coming up in the next hour on after the bell. you cannot afford to benefit. this guy did jail years ago with what was happening in the bond market, but having turned that around and starting to invest in diseases and cures that could save you, is pretty fascinating. you have to hear what he ays about the fiscal cliff. closing bell ringing in 39 minutes. can washington get its act together? nebraska, they are calling it, though farming cliff. all these subsidies for their farming. how that state is dealing with all the uncertainties. a fox business exclusive.
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we will wrap up our governors on the edge series. only on fox business. ♪
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liz: are you sick of the fiscal cliff, i know. it is a huge topic of conversation. how about this twist on it. though farming cliff. they want lawmakers to include a farming subsidy and deal discussions. how will this impact the state that has 93% of its land area used by farms and ranches. that is nebraska. we have dave heineman in a fox business exclusive. what a headache for you. we have been talking to governors all week long.
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everyone has their own story. yours, in particular, is extremely worrisome. explain what would happen if we go over the fiscal cliff. >> well, first of all, let me say good afternoon. it is always great to be with you. i am concerned not only about the farming cliff, but the overall fiscal cliff. we need america to come together. we need to create more jobs in america like we have done here in nebraska, as you know. we have 3.8% unemployment rate here in nebraska. i want you to know that i have talk to our farmers and ranchers. they are prepared to take their fair share of budget reductions if it will put america a better economic shape. liz: i know. i know. do you think it will happen?
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it does not look overall at the moment, governor. >> it does not. the president needs to lead just like the governor's lead in their states. they ought to stay together as long as it takes to develop a framework for a real positive solution to move forward regarding the fiscal challenges we face. the two of them need to sit down, get it worked out and put america first. liz: you governors and what we have learned from delaware and rhode island and pennsylvania and utah, all of you have been so kind to come on the show, is that you cannot wait to have this very delicate ballet dance that they seem to be engaging in. you have to balance your budget and figure it out. you, at the second lowest unemployment rate, are you worried that you may lose some traction there if we go over that fiscal cliff and what are you doing in advance to protect
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yourself? >> well, i am concerned about that in the long-term. my biggest challenge with the federal government right now, simply make a decision. we do that every day in the states. i wish they had the same requirement at the federal level. as we prepare our budget, we are getting ready, we have a strong cash reserve. we do not spend money we do not have out here. i am ready to deal with whatever happened at the federal level. i would just like it to be positive. think what would happen in america if america had our 3.8% unemployment rate. we will get this company moving again. more people would be at work. were people with untrained would be paying income taxes. liz: the question becomes, what else have you done right to get
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it at that level which is second only to north dakota? >> >> untrimmed i was just in china two weeks ago. we are prepared to do that. you have to create a tax competitive, job competitive, business friendly environment. the opportunities are with the private sector and we understand that here in nebraska. liz: have you prepared, not one, but two budgets. one taking into account we go over the cliff and the other if we do not go over the cliff. >> i really have not looked at it that way. i am preparing a budget for the next two-year cycle. we are prepared to adjust depending on what happens at the federal level. i do want to remain cautiously
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optimistic that they will find a deal. put america first. liz: i am glad that you do remain cautiously optimistic. nebraska is a very important state. you yourself have held it up at certain points worried about that. there is apparently, as i understand it, we are hearing from some people that a deal could be there. >> number one, the preferred route does that. secondly, on december 4, we are having a hearing to listen to all the concerns of nebraskans. that will finish up the environmental impact statement. if they pass all of that a lot that information will be forwarded to me by the end of the year and then i will forward
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all that information with a recommendation to the president sometime in january. again, if everything is positive, we will say approve it. if something is wrong, we will go back and take a look at it peered. liz: dave heineman, thank you for being on the program. we appreciate it. >> thank you. liz: almost all of our governors this week have served in the military. closing bell ringing in 29 minutes. knight capital. charlie's story. it is a subject of an intense bidding war. firms are coveting as market-making business. what is the latest, he hasn't. stay tuned. ♪ ande can save you 10% on ground shipping over the ups store.
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it's, stocks continued to drift lower as investors focus their attention and fiscal cliff negotiations, the dow is down 9 points, the nasdaq and the s&p lower. ford expects november to be a record month for hybrid sales. the automaker has sold 6,000 electric vehicles this month. ford has been vocal about its desire to challenge toyota's reputation for fuel efficiency. a former brazilian banker has agreed to pay $5 million to sell insider-trading charges with the securities and exchange commission in burger king before the second-largest u.s. fast-food chain agreed to a buyout back in 2010. the sec alleged $1.5 million were made in illicit profits.
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burger king was purchased by 3d capital partners for $3.3 billion. now we continue count down to the closing bell with liz claman. >> charlie gasparino comes rolling down the fence, dumps six points. charlie: i have been talking up this market forever. liz: one fast-food company may have been off more it can chew in china but lauren simonetti at the stock exchange. >> yum brands warning of a drop in sales in chhna, their biggest market this quarter, but the reaction down 10% at 6684 for the owner of taco bell, pizza hut and kfc. as one person is saying the stock is oversold because yesterday they were at the highest level ever. the research firm says the media is creating a china scare, yum brands of our diverse and it is a good pick for the long term but nonetheless second biggest loser on the s&p 500.
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liz: we like the leadership there. thank you very much. the battle over night trading, beaten down brokerage continues with two names, virtue and get co continuing their fight for the brokerage firm and this matter to the viewer why? charlie: it would be nice if they put my entire costs in to set up the story. i don't know what happened here. get go and virtue and possibly -- and possibly -- this is what liz was ready to say, a third term. here is what we know. early in the week, we understand -- they may be involved. this is one fur wear official expressed some interest, td ameritrade expressed, described it as this, some interest
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earlier in the week in a takeover battle, what does that mean? some interests, tom joyce went out when he got the two bids and the new virtue was going to bid, he went out and shopped, some interest from td ameritrade and we should point out, they were one of the bailout consortium that bailed out night back in august so it makes sense, a huge order provider. it matches the buyers themselves, usually of stocks, usually through order flow from the tv ameritrades of the world, the biggest market maker in that. liz: a lot of viewers have tv ameritrade. charlie: if you are a viewer, if you have a brokerage account chances are night securities plays some role in whatever you do to buy a stock and bond. we are covering this story. we have no comment from td
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ameritrade. they have not put in an official bid but expressed some interest and walked away. we don't know where it is but it is interesting because it is into trench warfare. you have virtue out there, the bid is $3 and we have got low cash. and is $3 and get go has a deal that is $3.50 cash stock and valued, the board of directors, and talk to them, you guys go back, get your financing, make sure you have got the money and let's talk next week. this is likely, a battle with is going to go into next week. this is not like it is going to be resolved today. i thought there was an indication after the close today, a few minutes until the close, we will see what happens,
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i doubt it. i hear this is a week from the players and they go back and financing, and a drawn-out battle, $4 a share. i like jennifer anniston but i like her for some reason. anyway, if he gets td ameritrade, you may get $3. liz: what does vinnie of virtue say? charlie: -- liz: anyone named vinnie viola deserves -- charlie: a really smart guy. a graduate of west point. he grew up in the same neighborhood as my wife. we know the same people, great guy, very smart guy from a humble background that became the head of the new york mercantile exchange.
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liz: get him on. charlie: it is like a given. liz: i went anybody named vinnie viola. charlie: vincent viola. we told you grasso is playing a role here because he is very good friends with the knee because he ran the stock exchange and they became close and is also friendly with tom choice because tom choice was a major trading guy at merrill lynch. liz: all friends with kevin bacon. charlie: grasso is playing a role -- calm down. i am sure he love that picture. he is playing a role as an artificial adviser of virtue. liz: i am sure this is reverting. i am loving it but thank you. charlie: my facebook page lights up when i talk about this.
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liz: facebook.com/-- charlie: my twitter page. i hate facebook now. liz: our show does it. facebook.com/liz claman. charlie: twitter is more user-friendly for what we do. liz: we do twitter too. maybe if we put nude photos of somebody we will get more hits. thank you very much. one come back the dow is down under 8 points, much more ahead. don't move. we are above 13,000, holding.
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liz: your fox business market jack, up 7 points down slightly, a few stocks ending november with conditions. cisco up 10% this month alone. earlier this week cisco said it would buy traffic management softwaremaker karen technologies, the price is $141 million in cash, that stocks lately down but home depot up nearly 6% this month alone and trading close to a new high-end going to take the third spot for dow monthly winners. it is pretty healthy for the
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month. let's bring back michael church, where he should be putting money to work and let's start with the fact that you mentioned earlier and want to drill down a bit j. p. morgan -- jpmorgan because you like the financials and housing markets. it was jpmorgan. >> the of the best going into next year. if you get a recovery, it will do well but we like jpmorgan. liz: it is cheap, but there's a reason it is cheap, only moderate improving and when the and trading business has been soft. there are reasons it is cheap but return on capital hasn't been great. >> they have struggled with that but it is trading at discounts and we think you're going to see a little bit of recognition of earnings power going into 2013 for jpmorgan. liz: a gain of 31 prison
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year-over-year. >> dropped the chart another year ended doesn't look as good. liz: the next kickoff have to put you on is a gold mine, gold miners have been dead money for quite some time. you are gusty. >> it has been the most beaten of all, particularly the majors. we think there is value there, we think sooner or later you are going to see the minor follow suit with a metal. liz: why not buy them now? >> because i think cost has been the issue for most of the minors for the last two years. a lot of that is behind them. when you start to see gold going higher the minors need to play big-time catch up. liz: the cost to management of these things? that brings up my thoughts about this and why can't they get this -- >> i agree with that america needs a new ceo. liz: how the new ceo does.
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buying natural gas here, he has been short for some time. what is the name you like in the space? >> devon. it has the best balance sheet and you need to be careful gas companies, some of their balance sheets are not as good as others and may run into problems particularly with gas below 4 but nevertheless it is one of the best balance sheets in the business. liz: not like the good old days when natural gas was $9 million -- you have to go back two or three years. >> well over 100. liz: we will see if that happens. the no. one moneymaker. >> e m c. this is several megatrends rolled up in one and we think they are in a lot of great spaces, one of which is data storage, in the secular world phase, you have storage growing exponentially. they are also in cloud and they own 80% -- liz: are you thick about it? my mail box has 2,300 e-mails.
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i am so bad and i always get those e-mails, it manages that? >> exponential growth in storage. vast amount of data that are continuing to grow every day. pictures and everything, think of corporations. it is continuing to explode. liz: does anyone do photo albums anymore? not the ones you do on apple, real photo albums. good to have you. mike church of addison capital management. the closing bell ringing in seven minutes. now we are well points. here is the question. how low can it go? after the break i will tell you about one stock whose shares can't find a bottom. [ male announcer ] if you're eligible for medicare,
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liz: i'm obsess with radio shack and can't believe everybody bought batteries but this is a company that cannot find a bottom in the stock, it is $2 and the penny. the annual low of the stock was $1.90 but high was $11.84 over the past year. it has been a tough go, we all need gold at the tables. it is down 80%, watch out, this could be scooped up by private equity or somebody getting in on a real-estate of radio shack. stay tuned for that prediction but in the meantime we are looking at a market that has jumped 26 points. could we end on the upside? let's get ready for "after the bell". dave: i go to radio shack, they don't have as many tech nerds, they have popular mechanics,
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popular science guys who knew everything, not so much, harder for them to get people working for them because they don't have the cash. liz: radio shack -- let's go to lauren simonetti at the new york stock exchange. you heard it yesterday afternoon. andrew mason will stay with the company even though stock has been a mess. shareholders do not like the news. >> they do not. the stock is down substantially. this year it is down 80% but and room mason is saying according to the board. liz: ever since the election we have seen coal stocks diving. they had some hope that things were going to turn around if romney was elected because he was speaking i me with them but today they got the boot. >> coal stocks up dramatically today. walter energy refuse to comment on the entrance in them keeping the sector on fire. the et of jumping, names like
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james river and natural resources all above 3% or 1%. liz: costco hitting an all-time high, this is accompanied always gets props for great management but when you see a stock do that well, certainly the carry on top. >> since yesterday the vice president being there in washington d.c. and talking about how companies manage very well, their workers stay for a peers in anyway and stock heir hitting all-time high of $104.50 today. dave: let's look at the tech stocks, how they are rounding the end of this trading day, we have apple and zynga down, but facebook always likes to buck a trend. always -- it is of another 2% today. >> facebook has had a really nice run in the month of november. all that negative commentary disappearing. for the nasdaq, it had a great week up 1.5%

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